TORONTO, Sept 30, 2004 – Brascan Asset Management Inc., a wholly owned subsidiary of Brascan Corporation (NYSE: BNN, TSE: BNN.a), announced today the filing of a final prospectus with the provincial securities regulators across Canada for the initial public offering of trust units of the Brascan SoundVest Total Return Fund.
The Fund is an actively managed investment trust which invests primarily in a diversified portfolio of income trusts and common shares and other equity securities. The Fund may also invest in high yield debt securities. The portfolio is initially expected to be invested with a 75% allocation to income trusts and 25% to common shares. This allocation is expected to provide an attractive current yield while offering the potential for capital appreciation.
The Fund will be managed by a subsidiary of Brascan Asset Management. SoundVest Capital Management Ltd. (“SoundVest”), which is 50% owned by Brascan, will act as the investment advisor and portfolio manager for the Fund. SoundVest is an established investment advisor, providing investment management services to pension funds, trusts and foundations.
“The launch of the Brascan SoundVest Total Return Fund expands our fund offerings made in partnership with SoundVest. Kevin Charlebois and his team at SoundVest have a superior track record in the Canadian equity and income trust markets. The SoundVest Canadian Equity Composite, which includes income trusts, has outperformed the S&P/TSX Composite Index for the one, five and ten year periods ending December 31, 2003,” commented Bruce Robertson, Managing Partner, Brascan Asset Management.
The offering is expected to close on October 15, 2004 at which time the Fund will be trading on the TSX under the symbol “BST.UN”. The underwriting syndicate is co-led by RBC Capital Markets and CIBC World Markets Inc. and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Trilon Securities Corporation, Canaccord Capital Corporation, Raymond James Ltd., Desjardin Securities Inc., Dundee Securities Corporation, and First Associates Investments Inc..
The anticipated distribution for the first twelve months of the Fund is C$0.70 per unit representing an annual yield of 7.0% based on the C$10.00 per Unit issue price. A copy of the final prospectus may be obtained through www.sedar.com
or by contacting one of the agents.
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Brascan Corporation is an asset management company. With a focus on real estate and power generation, the company has direct investments of US$17 billion and a further US$7 billion of assets under management. This includes 70 premier office properties and 120 power generating plants. The company is listed on the New York and Toronto stock exchanges under the symbol BNN and BNN.a, respectively.
For more information, please visit our web site at www.brascancorp.com
or contact:
Brascan Corporation:
Bruce Robertson
President and Chief Executive Officer
Brascan Total Return Management Ltd.
Tel: 416-363-0061
e-mail: brobertson@brascanam.com
Note: This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe”, “expect”, “anticipate”, “intend”, “estimate” and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forward in the forward looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the company's 40-F filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
